Can dictator and ultimatum game predict ethical decision making Research by means of the in class behavioral experiment

Abstract

Objective of the article is to analyze the capacity of economic games dictator and ultimatum to predict ethical behavioral tendencies in the managerial context. The research has been carried out on the basis of the in-class behavioral experiment, using the principles of Gepard (Generator of Economic Behavior in Pedagogic Activities for Research and Development). There were 157 participants; under-graduate students of business. A structural equation model (SEM) was used to test the predictors, which is suitable for non-parametric variables. A three-dimension graphical analysis was used for illustrative reasons. Results show that the combination of both games, dictator and ultimatum, works as a good predictor of the ethical decision-making in the managerial context. The results can find a wide application in the field of HR management, especially recruitment; however a further research is needed.however in a strictly ethical setting. Hence, the ultimatum game serves as a better way to distinguish between the two tendencies mentioned above.An interesting contribution of this article is the fact that it demonstrates the advantage of employing two independent methods, notably, structural equation model and threedimensional graphical analysis based on the least squares method. The combination of the methods helps to reveal important structures and phenomena that probably would not be identifiable otherwise.